Fourchon to get natural gas fueling facility

Published: Sunday, June 16, 2013 at 6:01 a.m.

Last Modified: Friday, June 14, 2013 at 9:57 p.m.

Harvey Gulf International Marine is set to add to its ongoing investment at Port Fourchon with a liquefied natural gas fueling facility.

The company is investing $400 million in liquefied natural gas, including the cost of the facility and new boat construction that will make it the only operator of liquefied natural gas-burning offshore service vessels in the country, according to Harvey officials.

The New Orleans-based company originally started in Cut Off in 1955. Over the decades, the company has evolved into one of the top offshore service providers at Port Fourchon.

The Company’s CEO Shane Guidry said Harvey Gulf operates 32 vessels out of Fourchon and expects to bring that number to 43 after this week’s purchase of 11 offshore-supply and fast-supply vessels from Raceland’s Gulf Island Logistics. The company has laid out more than $1.7 billion in capital expenditures since 2008.

Guidry said the facility is in addition to Harvey’s $95 million in planned or in-progress dock construction at Fourchon.

“Ultimately, what it means for us is that Port Fourchon is going to be the first location in the U.S. to have a (liquefied natural gas) fuel station for the marine industry,” said Greater Lafourche Port Commission Director Chett Chiasson. “Being the first, especially on something like this, clean burning, less emission, it is new frontier, and we are happy to be in this conversation.”

Chiasson said the new facility isn’t expected to add a large number of jobs but is an important development for the port.

Last week, Harvey Gulf announced the bunkering facility that will see liquefied natural gas trucked in from a yet-to-be-decided gas liquefaction location probably near the Mississippi River. The facility will consist of two fueling stations capable of storing 270,000 gallons of liquefied natural gas. The first station is expected to be completed in February 2014. Guidry said the facility will also be able to fuel large trucks that run off liquefied natural gas.

“This is something where the service industry is working hard to have a cleaner-burning fuel to service that industry,” Chiasson said. “Natural gas is a cleaner-burning fuel. It is cheaper, and there is an abundance of it. All signs point toward the good. We will have other local companies that are going to get involved in it.”

Guidry said the new facility will initially service Harvey vessels as they will be the only one with liquefied natural gas-capable boats at Fourchon.

Harvey Gulf has six liquefied natural gas-capable offshore service vessels under construction at Gulf Coast Shipyard Group in Gulfport, Miss., he added. These boats will be capable of burning diesel and liquefied natural gas, Guidry said, noting his company wants to be at the forefront of burning cleaner fuel in the Gulf.

“I’m the only guy building the boats. I have to have the fuel,” Guidry said. “I have to put the terminal in.”

Guidry said building a liquefied natural gas compatible vessel adds 20 percent to the overall costs.

“It is definitely not a cost savings,” Guidry said. “Over time, I’ve always surveyed the market and come out with an ecological-advanced solution. Today with everyone watching everyone else. We are going to build these expensive boats, meet regulatory climate, reduce emissions, and we are going to save our clients on 60 percent on fuel-burn costs.”

Earlier this year, Cut Off’s Edison Chouest Offshore announced a memorandum of understanding with Shell for a similar bunkering facility at Fourchon. Under than plan, liquefied natural gas will be barged from one of Shell’s liquefaction units in Geismar where it will be used to fuel vessels. Those liquefaction units are expected to begin production in three years, according to the announcement.

<p>Harvey Gulf International Marine is set to add to its ongoing investment at Port Fourchon with a liquefied natural gas fueling facility. </p><p>The company is investing $400 million in liquefied natural gas, including the cost of the facility and new boat construction that will make it the only operator of liquefied natural gas-burning offshore service vessels in the country, according to Harvey officials. </p><p>The New Orleans-based company originally started in Cut Off in 1955. Over the decades, the company has evolved into one of the top offshore service providers at Port Fourchon. </p><p>The Company's CEO Shane Guidry said Harvey Gulf operates 32 vessels out of Fourchon and expects to bring that number to 43 after this week's purchase of 11 offshore-supply and fast-supply vessels from Raceland's Gulf Island Logistics. The company has laid out more than $1.7 billion in capital expenditures since 2008. </p><p>Guidry said the facility is in addition to Harvey's $95 million in planned or in-progress dock construction at Fourchon. </p><p>“Ultimately, what it means for us is that Port Fourchon is going to be the first location in the U.S. to have a (liquefied natural gas) fuel station for the marine industry,” said Greater Lafourche Port Commission Director Chett Chiasson. “Being the first, especially on something like this, clean burning, less emission, it is new frontier, and we are happy to be in this conversation.”</p><p>Chiasson said the new facility isn't expected to add a large number of jobs but is an important development for the port. </p><p>Last week, Harvey Gulf announced the bunkering facility that will see liquefied natural gas trucked in from a yet-to-be-decided gas liquefaction location probably near the Mississippi River. The facility will consist of two fueling stations capable of storing 270,000 gallons of liquefied natural gas. The first station is expected to be completed in February 2014. Guidry said the facility will also be able to fuel large trucks that run off liquefied natural gas. </p><p>Cooling natural gas to 260 degrees below zero causes it to liquefy, making shipping and storage easier. </p><p>Industry experts and port officials said the move is for the long-term future as the regulatory climate moves toward offshore servicers toward the cleaner-burning and abundant natural gas. </p><p>Chiasson noted changes to emissions regulations are pushing offshore service companies away from diesel to cleaner-burning natural gas. </p><p>“This is something where the service industry is working hard to have a cleaner-burning fuel to service that industry,” Chiasson said. “Natural gas is a cleaner-burning fuel. It is cheaper, and there is an abundance of it. All signs point toward the good. We will have other local companies that are going to get involved in it.”</p><p>Guidry said the new facility will initially service Harvey vessels as they will be the only one with liquefied natural gas-capable boats at Fourchon. </p><p>Harvey Gulf has six liquefied natural gas-capable offshore service vessels under construction at Gulf Coast Shipyard Group in Gulfport, Miss., he added. These boats will be capable of burning diesel and liquefied natural gas, Guidry said, noting his company wants to be at the forefront of burning cleaner fuel in the Gulf. </p><p>“I'm the only guy building the boats. I have to have the fuel,” Guidry said. “I have to put the terminal in.” </p><p>Guidry said building a liquefied natural gas compatible vessel adds 20 percent to the overall costs.</p><p>“It is definitely not a cost savings,” Guidry said. “Over time, I've always surveyed the market and come out with an ecological-advanced solution. Today with everyone watching everyone else. We are going to build these expensive boats, meet regulatory climate, reduce emissions, and we are going to save our clients on 60 percent on fuel-burn costs.”</p><p>Earlier this year, Cut Off's Edison Chouest Offshore announced a memorandum of understanding with Shell for a similar bunkering facility at Fourchon. Under than plan, liquefied natural gas will be barged from one of Shell's liquefaction units in Geismar where it will be used to fuel vessels. Those liquefaction units are expected to begin production in three years, according to the announcement.</p>